2016 started off slowly, but the markets ticked higher this week giving the month of March a strong start. Fueled by higher oil prices, improvements in the manufacturing sector, and continuing strength in car sales, the markets pressed higher through Friday’s close.
Today’s jobs report showed signs of a healthy American economy and the increase of 242,000 non-farm jobs beat expectations, while also playing a role in this week’s stock market rise.
“The report says that we have a healthy economy and it’s beginning to get people back into the market. But it’s not pressuring wages yet. We need everyone to be aware that our wages have not rebounded, so we still have a ways to go before the labor market is really tight,” comments William E. Spriggs, chief economist at the AFL-CIO, to CNBC.
What This Means for Investors
While this week’s market was fueled by several different factors, it is also a pertinent reminder of the volatility that drives the peaks and valleys of the market. For investors looking to protect and grow the capital they’ve worked so hard to earn, the stock market is one of the most common choices, but far from the best. As the stock market continues to vacillate gains and losses, many investors are looking toward alternative assets like real estate, gold, and bonds.